Bitcoin’s decline from $66,000 to $60,000 last week was reflected in Bitfinex’s latest report. While analysts stated that the decline was ‘healthy’, they wrote that this situation prevented possible harsh volatile movements and even the possibility of a major collapse.

In the latest report of the Bitfinex exchange; Iran-Israel tensions, Metaplanet’s Bitcoin purchases, US employment and unemployment data, and IMF warnings to El Salvador were also included.

“Repositioned in a balanced way”

Analysts stated that especially Iran-Israel tensions were the most important reason for the decline, which led to a 4-day consecutive red candle closure:

“For the first time since August, the market closed red candles for 4 consecutive days due to what happened. This was actually a healthy retreat and prevented sharp volatile movements in the short term. The open position value of $35 billion, which is much higher than it should be, decreased to $31 billion. This was actually a more balanced level. Therefore, the market repositioned strongly.”

“November rate cut will attract money”

Bitfinex analysts wrote that the labour market figures in September and October were also seen positively by the market and that they expect a possible rate cut in November to positively affect risk appetite:

“Although the manufacturing industry is still feeling the impact of higher interest rates, the Fed will go for another cut in November. This will allow industries such as manufacturing to feel the rate cuts better. This is still not fully realised. But we can already see that activity in the service sector is already at an 18-month high. With the rate cut in November, risk appetite will increase further.”